The Market Has an Expected Rate of Return of 10

question 83

Multiple Choice

The market has an expected rate of return of 10.29 percent.The long-term government bond is expected to yield 4.73 percent,and the U.S.Treasury bill is expected to yield 3.21 percent.The inflation rate is 3.09 percent.What is the market risk premium?

• A)7)20%
• B)9)73%
• C)6)78%
• D)8)33%
• E)7)08%